Finance Program

The MMUA is excited to announce an updated capital finance program for its members. The MMUA has engaged Northland Securities Public Finance to design and implement a finance program that meets the needs of our members and helps them navigate a changing municipal bond market. Northland’s team has extensive experience in pricing and placing Minnesota with direct access to a large pool of bond purchasers. The result is a capital finance program that is simple, inexpensive, and cost-effective.

Each financing will be tailored to the individual needs of our members. A simple pre-application is the only thing needed to get the ball rolling. In many cases, the financing will be completed using bank direct placements. The process puts a large pool of banks in competition. Wherever possible, local lenders will be encouraged to compete for each transaction. The member will be matched up with the right lender in a process that will result in competitive rates and lower fees.

The advantages of using bank direct placements are less red tape and lower fees. There is no ratings fee (or calls with a ratings agency), there is no DTC cost because there is usually only one lender involved rather than many bondholders, generally no debt service reserve fund will be required, and often there is limited or no continuing disclosure work required. Northland has made arrangements with Peter Cooper at McGrann Shea et al, to be the representative for the borrower unless the borrower chooses to use someone else.

There will be circumstances where a traditional bond financing will make the most sense for a particular project. Through this program the member would be guided through every step of this process. Northland has a long history of underwriting utility revenue bonds and a very large customer base that’s knows and understands these credits.